U.S. CFTC Countersues Three States Over Jurisdiction of Prediction Markets

In an effort to establish nationwide uniform rules for prediction markets, the U.S. Commodity Futures Trading Commission (CFTC) and the Department of Justice (DOJ) filed a lawsuit on December 2 against the states of Illinois, Arizona, and Connecticut. The federal government argues that state-specific regulations on prediction market platforms conflict with federal law. It asserts that the Commodity Exchange Act (CEA) grants the CFTC exclusive jurisdiction over the derivatives market, including event contracts.